Solid Waste Management and Recycling

TRADE AND RECYCLING OF INORGANIC SOLID WASTE IN HYDERABAD 137

7.2. RECYCLING ENTERPRISES

The recycling enterprises are the final units in the commodity chain of recycling. Their
economic viability determines the viability of the whole chain of suppliers attached to
them, as indicated in the previous diagrams. They determine the prices for their
products and the prices paid for the secondary materials used as raw materials in such
production, and price changes are passed down the chain. Therefore, the analysis starts
from these private sector recycling units as end units in the value-added chain. The
entrepreneurs generally have an ‘other caste’ status, i.e. are not from backward or
scheduled castes. They are well educated, with half of them having a bachelors degree
in engineering or commerce, and the other half an MA degree in similar subject areas.

Recycling units have become more popular in the 1990s. In the 1970s only one was
set up, whereas six were started up in the 1990s. The recent entry of new units is an
indication of the viability of the recycling units. The presence of recycling units with
both small and large capital investment indicates that units of varied size can operate
successfully in recycling activities (Table 7.1). Larger units have the equipment to
carry out all stages of processing and production. Smaller units produce intermediate
goods, as the investment for further equipment is too high. The units are able to obtain
reasonable to large margins of profits, with an average of almost 10 percent (based on
turnover/costs). The plastic companies are able to obtain higher profit levels than units
recycling other types of materials (see tables in the Appendix to this chapter)^6.

Figure 7.5. Glass waste flow

6. This is similar to results obtained in earlier studies of recycling units in Bangalore (Van Beukering,
   1994).

GENERATION

Households

Public and

privateinstitutions

Dustbins

Office boys

Tricyclists

House wives

Servants/maids

Itinerant

buyers

RECOVERY TRADE RE -USE

Small

traders

Waste

pickers

Furnaces

Recycling

units

Whole sale

traders

Retail

traders

RECYCLING EXPORT

Other

states

Surrounding

districts ofHyderabad

Factories

Builders

Builders

Factories

Builders

Factories

Production

units using

secondary

material